Proper Disclosure
Psagot Securities Ltd. – portfolio manager and member of the Tel Aviv Stock Exchange-, and Psagot Investment House Ltd. –an investments marketer- (hereinafter both are collectively referred to as the "Companies"), specialize in investment marketing (and not in investment advice) and belong to the Psagot Group (hereinafter: the "Investment House"). The Investment House deals, directly or indirectly, with a diverse range of activities in the capital market, including in securities and financial assets, investment in securities and financial assets for itself and others, Tel Aviv Stock Exchange member services, mutual funds management, provident funds and study funds management, pension fund management, issuance of exchange-traded notes and binding certificates, and other activities in the Israeli and foreign capital markets.;
The Companies hereby inform that the Companies are a corporation that are affiliated to one another and are also affiliated to the institutional bodies elaborated upon as follows:
1. Psagot Mutual Funds Ltd. –mutual funds manager.
2. Psagot Provident Funds Ltd. – a provident funds management company
3. Psagot Pension Ltd. – senior pension fund mangement company
4. Magen Pension Fund Management Company Ltd. –pension funds mangement company
Additionally, the Companies hereby inform they have an affiliation to the financial assets managed by the other company and to the financial assets managed by the following companies, as follows:
1. The mutual funds managed by Psagot Mutual Funds Ltd., that are detailed and updated from time to time on the Investment House’s website at: www.psagot.co.il
2. The provident funds managed by Psagot Provident Funds Ltd., that are detailed and updated from time to time on the Investment House's website at: www.psagot.co.il
3. The senior pension fund managed by Psagot Pension Ltd.
4. The pension funds managed by Magen Pension Fund Management Company Ltd.
5. The provident funds which their investments are managed by Psagot Securities Ltd.
6. The financial assets managed by Psagot Exchange Traded Notes Ltd., Psagot Binding Certificates Foreign Currency Ltd., Psagot Exchange Traded Notes Indexes Ltd. and Psagot Platinum Structured Products Ltd., that are detailed and updated from time to time on the Investment House's website at: www.psagot.co.il
As noted, the Companies that operate as a “investments marketer” (and not as an "investments adviser"), may receive benefits in connection to the financial assets purchased for clients’ accounts . The Companies are permitted to opt for financial assets that they have an affiliation to, rather than other financial assets that are similarly suitable for the client, but are not affiliated to the Companies.
Further to the aforementioned, either of the Companies and/or companies in the Investment House may operate as described below:
1. They are entitled to receive distribution and management fees as well as commissions in connection with the purchase of securities on behalf of the client from the Investment House's participation in issuances.
2. They are entitled to commissions in connection with transactions relating to securities and financial assets in the client's portfolio and for transactions related to securities and financial assets on behalf of the mutual funds manager and the provident funds management company.
3. They are entitled to receive from banks and/or third parties and/or their agents commissions or commission refunds covering services executed by them on behalf of the client in connection with the client's portfolio and/or in connection with the client's account in any banking organization whatsoever.
4. Their employees and/or any of their representatives, engaged in marketing, brokerage and/or the provisioning of services to the client, may at times be rewarded for their contribution to marketing, brokerage and the provisioning of services from the management fees and/or other payments charged by them to the client for their services.
5. They are entitled to engage in investment banking and are entitled to receive commissions from third parties for associating transactions on the stock exchange and/or outside the stock exchange related to securities and financial assets in which they serve as a broker in a transaction related to said securities and/or financial assets.
6. Serve as a distributor of securities offered to the public.
7. They are entitled to be paid a commission in connection with the purchase of securities via issuances as set forth in the prospectus.
8. They may, from time to time, directly or indirectly, have holdings and act on their own behalf in securities and financial assets purchased towards the client's account/sold from the client's account/held in the client's account, prior to and/or during the course of and/or following the execution of the transactions as above-mentioned on behalf of the client.
9. The Companies, in the framework of their operations in the Investment House, may have additional affiliated companies and therefore the Companies will have an interest in such companies. The Companies will be entitled to execute transactions in securities issued by such companies notwithstanding their interest as aforesaid, so long as the transactions are executed for purely professional considerations in the client's favor.